(Alliance News) - HICL Infrastructure PLC on Wednesday reported a rise in assets and said it is on target to hit its annual dividend forecast.
The FTSE 250-listed infrastructure investment company ended September 30 with net asset value per share of 155.4 pence up 2.0% compared to 152.3 pence at the end of March. Its NAV total return for the period was 9.8%, up from 7.8% a year earlier.
HICL reported a pretax profit of GBP139.2 million in the six months to September 30, up 34% from GBP104.1 million a year before. Income 29% rose to GBP157.2 million from GBP121.9 million.
HICL attributes this growth to a continued recovery from Covid-19, value enhancement initiatives across its portfolio, strong asset pricing in the company's core geographies, and higher than assumed inflation.
HICL's interim dividend rose slightly to 4.13 pence per share from 4.12 pence, and expects to hit its annual dividend target of 8.25p. The company has also reaffirmed its dividend guidance of 8.25p per share for the year to March 31, 2023.
"I am pleased to report a strong result for the period, with a return to NAV growth and a cash covered dividend. We continue to see encouraging signs of recovery from the Covid-19 pandemic, which in combination with value enhancement initiatives across the portfolio has supported an annualised total return for shareholders of 9.8% in the period," Chair Ian Russell commented.
"With inflation expected to remain elevated in the company's core markets, the board believes the inherent inflation correlation of HICL's return, at 0.8x, to be highly attractive for investors seeking sustainable, long-term income."
Shares in HICL Infrastructure were down 0.2% in London on Wednesday at 171.71 pence each.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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HICL Infrastructure (HICL)